2021 ProSeries/Virginia Readme

Release 2021.420

Contents

What's new for ProSeries/Virginia

Forms

Electronic filing

Items addressed in this release

• Electronic payment requirement thresholds updated - Effective for payments made on and after July 1, 2022, individuals must submit all income tax payments electronically if any payment exceeds $1,500 or the sum of all payments is expected to exceed $6,000. This includes estimated, extension, and return payments.
• Schedule A, Line 6 - Corrected issue where under unusual circumstances some Other Tax amounts were not flowing from Federal Schedule A.

Items addressed in previous releases

• Program enhancements. Various improvements to product functionality.
• Public School & Library Contributions: Amherst County Public Schools code has been updated.
• Form 760C: Line 10, columns B & C have been updated so values correctly populate for timely payments made for each period.
• Taxpayer/Spouse Allocation Worksheet: Line 7 has been updated to remove $1 rounding issue.

What's new for ProSeries/Virginia

The following items are new for tax year 2021:

• Virginia's fixed date conformity with the Internal Revenue Code: Virginia's date of conformity with the Internal Revenue Code (IRC) was advanced from December 31, 2020 to December 31, 2021, subject to certain exceptions. This legislation also generally conformed Virginia to the provisions of the federal American Rescue Plan Act of 2021 (“ARPA”) and provides additional benefits to recipients of certain coronavirus disease 2019 (“COVID-19”) business assistance programs during Taxable Years 2021 and 2019. However, Virginia specifically deconforms from certain provisions of this federal legislation. This includes, but is not limited to, bonus depreciation allowed for certain assets under federal income taxation, five-year carry back of certain net operating losses (“NOLs”) generated in Taxable Years 2008 and 2009, cancellation of debt income exclusion, deductions related to the application of the applicable high yield debt obligation rules, the suspension of the federal overall limitation on itemized deductions, and the reduction in the medical expense deduction floor.
• Standard deduction: The Virginia standard deduction remains at $4,500 for individuals and married taxpayers filing separately, and $9,000 for married taxpayers filing joint returns.
• Changes to Certain Itemized Deductions: For Taxable Year 2021, Virginia will deconform from the decrease in the medical expense deduction.
• Facilitated Health Care Enrollment: Taxpayers have the option to indicate on Form 760 that they and/or their dependents are without health insurance. Filers may provide consent, along with specific information on Schedule ADJ about themselves, their spouse, and their dependents. This information will be shared with the Virginia Department of Medical Assistance Services (DMAS), for the purposes of determining eligibility for income-based medical assistance programs.
• Increased Annual Credit Caps for Research and Development Tax Credits: The annual cap for the Research and Development Tax Credit increased from $7 million to $7.7 million per fiscal year. The annual cap for the Major Research and Development Tax Credit increased from $20 million to $24 million per fiscal year.
• Port of Virginia Tax Credits Sunset Date: The sunset date for three Port of Virginia Tax Credits has been extended to tax years beginning before January 1, 2025.
• Virginia Housing Opportunity Tax Credit: For taxable years beginning on and after January 1, 2021, but before January 1, 2026, taxpayers may claim a Virginia tax credit in an amount substantially similar to the amount of the federal low-income housing tax credit allocated or allowed by the Virginia Housing Development Authority to such projects.
• Agricultural Best Management Practices Tax Credit: This tax credit has increased to 25% of the first $100,000 expended for agricultural best management practices. Additionally, an expanded credit is available equal to 50% of the first $100,000 expended.
• Conservation Tillage and Precision Agriculture Equipment Tax Credit: For taxable years beginning on and after January 1, 2021, but before January 1, 2026, a refundable tax credit is available for the purchase of certain types of conservation tillage and precision agricultural application equipment.
• Changes to Coal-Related Tax Credits: The Coalfield Employment Enhancement Tax Credit and Coal Employment and Production Incentive Tax Credit will expire January 1, 2022.

Forms

The Virginia Department of Tax and Revenue has approved for filing all forms and schedules included in the program.

Electronic filing

You can file returns electronically with this version of ProSeries/Virginia.

General information for electronic filing:

For a list of forms that can be e-filed, go to the What's New for Virginia in Help Center.

End of ReadMe file for ProSeries/Virginia